Champion Minerals Inc.
TSX VENTURE : CHM

Champion Minerals Inc.

November 24, 2008 11:48 ET

Champion Minerals Completes Initial Field Work on Fermont Iron Property

TORONTO, ONTARIO--(Marketwire - Nov. 24, 2008) - CHAMPION MINERALS INC. "Champion" or the "Company") (TSX VENTURE:CHM) is pleased to provide shareholders with an update on results of the initial field work completed to date as part of the Phase 1 exploration program on the 15 mineral concessions (refer to the appended table for a complete listing of concessions), of the Fermont Iron Property (the "Property") in the Fermont Iron Ore District ("FIOD") of northeastern Quebec. The 261.5 km2 Property is situated 250 km north of the St. Lawrence River port town of Port-Cartier and centered 60 km southwest of Fermont.

Champion recently signed a Binding Provisional Option Agreement (the "Agreement") with Fancamp Exploration Ltd. and The Sheridan Platinum Group Ltd. (collectively, the "Vendors"), allowing Champion to acquire up to a 70% interest in the Property (Champion news release dated May 27, 2008). Under the terms of the Agreement, Champion can earn an initial 65% interest in the Property at the Company's option by expending C$6 million in staged exploration and development work expenditures on the Property, making cash payments to the Vendors totalling C$1 million, and issuing 2.5 million shares to the Vendors, all over a 4-year period, with the Vendors retaining a 3% Net Smelter Returns ("NSR") royalty, one third of which may be purchased by Champion for C$3 million.

The Phase 1 Exploration Campaign

GPR Geophysics International Inc. of Longueil (Quebec) recently completed a 3,855 line-km airborne Magnetic and Electromagnetic (VLF-EM) geophysical survey over all 15 mineral concessions of the Property. Following this, a helicopter borne reconnaissance prospecting program was completed over a 5 day continuous period in October 2008 to map the iron formations, structural geology and to sample outcrops in the vicinity of magnetic anomalies to compare with type iron formations that host iron orebodies in the FIOD. All 15 mineral concessions, grouped in three clusters, were evaluated from the air for physiographic elements (roads and trails, waterways, rail and power lines), and historic exploration work (line grids, trenches, drill hole sites).

Key observations from the visits and on-going geophysical and geological synthesis of the Property include:

- The iron mineralization is linked to specular hematite and quartz commonly known as quartz specularite iron formations, and are visually recognizable from the air due to the steel dark grey colour of the quartz specularite outcrops;

- The iron formations have variable widths from 20m to 100m with the proportions of specular hematite and quartz varying along and across strike;

- Magnetic signatures from the Champion geophysical survey reveal extensive and highly folded horizons totalling more than 200km in cumulative strike length within the 15 properties; and

- One end member of the spectrum of the quartz specular hematite iron formations display granular and friable layers that disaggregate to sand quite readily to a more massive and highly silicified end member;

Thomas Larsen, President and CEO of Champion added, "Since the acquisition of the Fermont Iron Property in May of this year, Champion has been diligently assessing the iron potential of the 15 mineral concessions. The Champion team has identified several priority targets that will be estimated for their size potential and drill tested to develop Mineral Resources during the winter of 2008-2009."

Recently produced regional compilation maps are available on the Champion website at www.championminerals.com.

The Fermont Iron Property

The Fermont Iron Property host significant historic pre-National Instrument ("NI") 43-101 Mineral Resources of 610 million tonnes @ 32.2% iron (refer to table below on historic mineral resources), located in proximity to former operating iron mines and deposits currently being mined, developed or evaluated for iron mining. The pre-NI 43-101 Mineral Resources are divided amongst 7 of the 15 claim blocks.

There are five major iron deposits in the FIOD area of Quebec:

- Arcelor-Mittal's Mt. Wright Mine (1,000 million tonnes @ 30% Fe), Fire Lake Mine (341 million tonnes @ 33.4% Fe) and the Mt. Reed Occurrence (421 million tonnes @ 31% Fe) (sources: www. arcelormittal.com; MRNF Quebec Files);

- Consolidated Thompson Iron Mines Limited's Bloom Lake Deposit (638 million tonnes @ 29.8% Fe) (source: Consolidated Thompson Iron Mines Limited SEDAR filings available at www.sedar.com);

- Consolidated Thompson Iron Mines Limited's Peppler Lake Iron Project (formerly Quinto Mining Corp.) containing 250 million tonnes @ 28.2% Fe (source: Quinto Mining Corporation SEDAR filings available at www.sedar.com);

The Moire Lake East mineral concession is adjacent to the east of Arcelor Mittal's Mont Wright Mine and in proximity to Consolidated Thompson Iron Mines Limited's Bloom Lake Deposit that is currently being developed and is expected to produce 7 million tonnes of iron concentrate per year at a grade 66.5% Fe. At Moire Lake East the Company located previous drillholes and gridwork such that 70 historical drillholes could be precisely surveyed, which affords Champion the option to twin selected holes during the winter months to validate the extent and grade of the iron mineralization and mineral resource model.

The O'Keefe-Purdy-Audrea Lakes, Harvey-Tuttle Lakes, Bellechasse-Midway, Midway SE, Oil Can Lake, Don Lake, Fire Lake North, Hope Lake, Hope Lake SW and Casse Lake mineral concessions are in close proximity to the Consolidated Thompson Iron Mines Limited's Peppler Lake Iron Project and Arcelor-Mittal's Fire Lake Mine, currently being developed for production.

About Champion Minerals

Champion is a junior exploration Company focused on discovering and developing significant metal resources in eastern Canada, particularly in Labrador and Newfoundland, and northeastern Quebec. The Company's projects include the Powderhorn and Gullbridge Base Metal Projects located in central Newfoundland, the Attikamagen Iron Property, located in western Labrador and northeastern Quebec, and the Fermont Iron Property in northeastern Quebec.

Mr. Jeff Hussey, P. Geo., Vice President, Exploration for Champion, is the Qualified Person responsible for the technical information reported in this news release under National Instrument 43-101 regulations.

Statements in this release that are not historical facts are "forward-looking statements" and readers are cautioned that any such statements are not guarantees of future performance, and that actual developments or results, may vary materially from those in these "forward-looking statements.

Complete listing of the 15 mineral concessions from the Fermont Iron Property



---------------------------------------------------------
SIZE NTS
MINERAL CONCESSION (km2) MAP-SHEET
---------------------------------------------------------
CLUSTER 1
---------------------------------------------------------
MOIRE LAKE 13.3 23B14
---------------------------------------------------------
CLUSTER 2
---------------------------------------------------------
O'KEEFE-PURDY-AUDREA LAKES 37.6 23B11, 23B12
---------------------------------------------------------
HARVEY-TUTTLE LAKES 49.8 23B05, 23B12
---------------------------------------------------------
BELLECHASSE-MIDWAY 6.9 23B11
---------------------------------------------------------
MIDWAY SE 8.0 23B11
---------------------------------------------------------
OIL CAN LAKE 9.0 23B11
---------------------------------------------------------
DON LAKE 2.7 23B06
---------------------------------------------------------
FIRE LAKE NORTH 21.2 23B06
---------------------------------------------------------
HOPE LAKE 6.9 23B06
---------------------------------------------------------
HOPE LAKE SW 3.2 23B06
---------------------------------------------------------
CASSE LAKE 13.5 23B05
---------------------------------------------------------
CLUSTER 3
---------------------------------------------------------
AUDREY-ERNIE LAKES 28.1 23C01, 23B04
---------------------------------------------------------
BIG THREE LAKES 4.8 23C01
---------------------------------------------------------
AUBERTIN-TOUGARD LAKES 28.1 23B04, 22O13
---------------------------------------------------------
SILICATE-BRUTUS LAKES 28.6 22O13
---------------------------------------------------------
TOTALS 261.5
---------------------------------------------------------



Historic Mineral Resources - Fermont Iron Property


-----------------------------------------------------------------------
GRADE NUMBER OF
PROJECT NAME TONNES (% iron) DRILL HOLES
-----------------------------------------------------------------------
MOIRE LAKE 101,000,000 30.8 65
-----------------------------------------------------------------------
O'KEEFE-PURDY-AUDREA LAKES 25,000,000 35.5 18
-----------------------------------------------------------------------
BELLECHASSE-MIDWAY 91,400,000 30.0 N/A
-----------------------------------------------------------------------
FIRE LAKE NORTH 40,600,000 32.0 15
-----------------------------------------------------------------------
AUDREY-ERNIE LAKES 23,000,000 33.2 2
-----------------------------------------------------------------------
BIG THREE LAKES 25,000,000 34.0 N/A
-----------------------------------------------------------------------
SILICATE-BRUTUS LAKES 304,000,000 29.4 18
-----------------------------------------------------------------------
TOTALS 610,000,000 29.4 118
-----------------------------------------------------------------------


The mineral resources outlined here are historical in nature, are non-compliant to a NI 43-101 Mineral Resources and should not be relied upon. There has been insufficient exploration to define Mineral Resources and that it is uncertain if further exploration will result in these numbers being delineated as Mineral Resources.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Champion Minerals Inc.
    Thomas G. Larsen
    President and CEO
    (416) 866-2200
    or
    Champion Minerals Inc.
    Jorge Estepa
    Vice-President
    (416) 866-2200
    (416) 361-1333 (FAX)
    Website: www.championminerals.com